Is there a duty to setup pension provisions?
Is there a duty to setup pension provisions?
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Puggit

Original Poster:

49,821 posts

278 months

Tuesday 18th September 2007
quotequote all
I work for a Canadian company (around 250 employees) of which 17 are based here in the UK. I'm paid monthly by PAYE.

Is there any duty of the company to pay towards a pension? At the moment there is zero provision.

Percy Flage

1,770 posts

252 months

Tuesday 18th September 2007
quotequote all
The only obligation isfor the employer to have a Stakeholder scheme designated, and to offer to deduct your (voluntary) contributions through payroll and remit them in a timely fashion to the designated provider.

There is no requirement for the employer to contribute. Yet. This may change in 2012.

Eric Mc

125,770 posts

295 months

Tuesday 18th September 2007
quotequote all
Any UK employer with 5 or more employees MUST offer a Stakeholder Pension Scheme to theire employee - if the employer doesn't already have an established employer occupational scheme in place. The employee is not obliged to join the stakeholder scheme - but the choice to join must be available.

If an employer does not make stakeholder scheme - they are in contravention of employment and pension regulations and could be fined.

Corsa Turbos

63 posts

232 months

Thursday 20th September 2007
quotequote all
Does the employer actually have to offer the pension, or is it just good enough to offer once an employee has asked?
The company my boyfriend works for haven't mentioned anything, though they haven't even given anyone a contract of employment!

JohnP68

426 posts

312 months

Thursday 20th September 2007
quotequote all
Unless exempt, the company has to choose (designate) a provider, having consulted relevant employees, and then make all eligible employees aware that they can choose to contribute to it.

See p5 of the booklet at http://www.thepensionservice.gov.uk/resourcecentre... for more details.